Aaditya Thackeray has written a letter to Finance Minister Nirmala Sitharaman suggesting changes in the import duty on electric vehicles.
see photosElon Musk is lobbying for lower import duties in India
While most of Elon Musk’s proposals towards the Indian government have been shelved, the world’s richest man has found a key ally to start selling his electric car company in India. He is Aaditya Thackeray, son of Maharashtra Chief Minister Uddhav Thackeray. Thackeray himself is the Minister of Tourism and Environment in Maharashtra and recently wrote a letter to Finance Minister Nirmala Sitharaman on the anticipation of the upcoming Union Budget for 2022-2023 which will be presented next month.
Thackeray suggests that the Center should reduce the import duty for all electric car makers. “Companies like Tesla, Rivian, Audi, BMW among many others should be given a time bound concessional customs duty rate for import of vehicles for retail sale. This will boost aspirational value in the market, boost investment in our supply chain and startups. Encourage the ecosystem to follow the lead of such companies,” he writes.
They claim that the concessional rate can be for a maximum of 3 years or can be defined up to a certain limit of units for a foreign company that wants to sell EVs or components of a global standard. He said that these concessions should be given on a certain investment guarantee in India’s auto supply chain or charging infrastructure.
I have written to Hon’ble Finance Minister of India Smt. Nirmala Sitharaman ji Some humble suggestions to promote electric mobility revolution in India. pic.twitter.com/MstdI20oke
—Aditya Thackeray (@AUThackeray) January 19, 2022
“High import duty only adds to the burden of the customer and does not lay the groundwork for any industry investment as customs revenue is not directly used for sectoral investment,” he explained.
Tesla has been demanding reduction in import duty since the induction of its Indian unit in 2021. In August last year, Musk claimed that “import duties in India are among the highest in the world of any major country”. Musk retweeted last week about the “challenges” faced by his company before the Indian government.
Indian law stipulates a 60 percent import duty on fully imported cars that cost less than $40,000, including cost, insurance and freight. There is a 100 percent fee if the total cost exceeds $40,000. Tesla’s cheapest car right now – the Model 3 – currently starts at around $40,000 without taxes in the US, which means that in addition to just freight costs, that figure would exceed the $40,000 mark and it would put it at $100. will be held liable. Percentage duty in India on import.
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Tesla has been non-committal about local manufacturing and is instead seeking to import its vehicles from the Shanghai Gigafactory. Tesla has a lot of potential — it already has three gigafactories active in North America, Europe and China, with another coming up in the US state of Texas.
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